Final answer:
Environmental scanning is a tool used by managers to anticipate key events and trends affecting a business in the future. It involves analysis and forecasting based on environmental changes, similar to how biological models like SDMs predict species distributions to manage invasive species.
Step-by-step explanation:
Understanding Environmental Scanning
Environmental scanning refers to the tool that managers use to scan the business horizon for key events and trends that will affect the business in the future. It involves tracking changes and patterns in the environment to forecast their potential impact on an organization. This includes analyzing economic, technological, legal, and socio-cultural dimensions. Managers employ environmental scanning not just to understand the impact of environmental factors on a firm, but also to anticipate how to influence those factors strategically. Tools used in environmental scanning may include statistical models like species distribution models (SDMs), which analyze and predict the spread of invasive species.
SDMs, while specific to biology, provide an exemplary framework for environmental scanning practices across different sectors. They are based on analyzing the distribution of species in relation to environmental conditions, thereby facilitating decision-making in managing biological invasions—a process not unlike forecasting market trends or technological advancements in business. The methodology of SDMs—which incorporates collecting data, fitting statistical models to this data, and then using these models to make forecasts—mirrors the analytical approach taken in environmental scanning within the business world.